Free float is defined as the proportion of outstanding shares available to buy or sell in public markets by international investors.
MSCI now sees Adani Total Gas’ free float at 14% against 25% earlier. For Adani Transmission it sees it at 10% against 25% earlier.
“For the remaining Adani securities, MSCI will continue to apply the FIF implemented as part of the February 2023 index review,” MSCI said.
Therefore, there will be no change in the FIF as part of the May index review for ACC, Ambuja Cements, Adani Enterprises, Adani Green Energy, Adani Ports and SEZ, and Adani Power, MSCI said.
The implementation of the same was to be initially done in February following the rout in
Adani stocks amid the explosive report by US-based Hindenburg Research.The American short seller claimed that the group indulged in stock price manipulation through shell companies, corporate misgovernance, and that most of the group companies remain highly leveraged with negative cash flows.
This resulted in a massive sell-off in Adani stocks and erosion of more than $100 billion in market value.
Then, MSCI was to consider reducing the weightings of four Adani Group companies – Adani Total Gas, Adani Transmission and Adani Transmission and ACC. The four companies had a combined 0.4% weighting in the MSCI emerging markets index.
However, during its February review, the index aggregator did not do any tweaks to Adani stocks.
The group’s efforts to soothe investors’ nervousness by prepaying some debt and even reducing the pledged shares turned in favour of the stocks.
Then a Rs 15,000 crore investment by GQG Partners in 4 Adani group companies further bolstered sentiment and bought shares of the company on the track to recovery.
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